Written answers

Thursday, 23 June 2016

Department of Environment, Community and Local Government

Local Authority Housing Mortgages

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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150. To ask the Minister for Environment, Community and Local Government the number of new local authority mortgage loans and the total value that have been given out in each of the years 2011 to 2014, for each local authority in the country; and if he will make a statement on the matter. [17857/16]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Information in relation to the number of new local authority loans advanced and associated total loan value, broken down by local authority for the years in question, is available on my Department’s website at: .

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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151. To ask the Minister for Environment, Community and Local Government the interest rate that now applies to local authority mortgage loans; the efforts his Department and individual local authorities are making to market this loan scheme; and if he will make a statement on the matter. [17858/16]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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152. To ask the Minister for Environment, Community and Local Government the eligibility conditions that apply, by way of household income and so forth, of the local authority mortgage loan scheme; and if he will make a statement on the matter. [17859/16]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 151 and 152 together.

With effect from 1 July 2016, a cut of 0.25% will be applied to the variable mortgage interest rate charged to local authority borrowers. This cut will reduce the current variable rate of 2.55% to 2.30%. The interest rate applied to the Home Choice Loan scheme has also been reduced from that date, from 3.5% to 3.25%.

Further information in relation to this interest rate cut is available at:

.

Information on local authority loans is publically available on the websites of:

local authorities at

;

the Citizen Information Board at:

;

and on my Department’s website at:

.

The Housing (Local Authority Loans) Regulations 2012prescribes, in detail, the terms and conditions applicable to local authority housing loans. Key eligibility criteria provide that a loan applicant must be a first time buyer and must be able to show their local authority that they cannot get a loan from a bank or building society. Also, the gross income (before tax) of a single income household in the last year must be €50,000 or less and the combined gross income (before tax) of a two income household in the last year must be €75,000 or less.

In 2009, a Credit Policy, in accordance with the Housing (Local Authority Loans) Regulations 2009, was issued to all housing authorities. Decisions on all housing loan applications must be made in accordance with this statutory Credit Policy in order to ensure prudence and consistency in approaches.

All applicants must complete a housing loan application form which can be downloaded from the relevant local authority’s website. As part of the loan application procedure, the Housing Agency provides an underwriting and support service to all local authorities. This shared central service processes loan applications, carries out credit checks and issues a recommendation to the local authority on each loan application in accordance with the credit policy. The final decision on loan approval is a matter for each local authority and its credit committee on a case-by-case basis. Accordingly, the local authority issues the loan and the Housing Agency provides an underwriting and support service to the local authority during the loan application process.

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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153. To ask the Minister for Environment, Community and Local Government the number and value of mortgage loans issued under the home choice loan scheme for first-time buyers since 2011 and in 2016, to date, by year and by local authority, in tabular form; and if he will make a statement on the matter. [17860/16]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The information requested is set out in the table. The Home Choice Loan (HCL)  is a mortgage for first time buyers provided by local authorities. The terms and conditions of this loan are set out in the specific regulations – the Housing (Home Choice Loan) Regulations 2009 – a copy of which is available at .

Further details in relation to the Home Choice Loan can be found at .

Home Choice Loans are advanced and administered by four lead local authorities - Dublin City Council, Cork City Council , Kilkenny County Council and Galway County Council - that operate on behalf of all other local authorities. To support local authorities in operating the HCL in a consistent and efficient manner, the Housing Agency provides a central underwriting service to local authorities. The final decision on loan approval is a matter for the relevant local authority and its credit committee on a case-by-case basis and in accordance with the statutory Credit Policy that underpins the scheme.

I will continue to keep the operation of the HCL under review.

Year
2011
2012
2013
2014
2015
2016
Local Authority Total loan value No. Total loan value No. Total loan value No. Total loan value No. Total loan value No. Total loan value No.
Cork City €143,400 1 €193,200 1 €0 0 €0 0 €0 0 €0 0
Dublin City €410,875 2 €483,200 3 €276,000 1 €318,000 2 €0 0 €0 0
Galway €0 0 €100,000 1 €0 0 €0 0 €0 0 €0 0
Kilkenny €0 0 €0 0 €0 0 €0 0 €0 0 €0 0

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